In sector terms, healthcare stocks were the best performers, rising 2.3 per cent.
CSL
posted its biggest one-day rise since its profit upgrade in November, climbing 3.5 per cent to $54.21 after Macquarie reiterated its “outperform" rating on the stock with a 12-month price target of $62.

UBS also issued a report naming CSL as one of only two “buy" calls in its healthcare coverage universe.

AFR
AFR

Primary Healthcare climbed 2.4 per cent and ResMed rose 1.9 per cent.

Bearish views against the retail sector may temper slightly after the positive January reading with the level of sentiment consistent with growth between 3 and 4 per cent in overall consumer spending.

“It doesn’t suggest that retail spending is going to fall away dramatically in the near term," said National Australia Bank senior economist David de Garis. “There are still hesitations, but the reality is that while people have jobs and some income, they’re feeling OK."

Pacific Brands, Myer Holdings and David Jones gained 2.6 per cent, 2.2 per cent and 1.7 per cent respectively.

Former top 200 company Aquarius Platinum surged 15.1 per cent to a seven-month high after Anglo American Platinum announced it was closing down up to 400,000 ounces of annual platinum production from its South African operations.

Platinum, which is predominantly used in fuel cells, motor vehicles and jewellery, has risen 8.6 per cent so far in January. Analysts will be scrutinising the Australian Bureau of Statistics’ employment data out on Thursday for signs of economic weakness, which could flow through to a rise in bad debts for banks or hamper consumer spending.